Halifax’s most recent House Price Index, released this morning, shows that UK house prices went up for the fourth month in a row in February.
The rise in monthly house prices was 0.4%, while the yearly comparison showed a 1.7% increase from the previous year, bringing the average UK house price to £291,699 in February.
Although there has been a moderate increase in average UK house prices, the market’s future looks bright. The Bank of England’s last Money & Credit report indicated a rise in the number of mortgages being approved.
Jason Tebb, President of OnTheMarket, gave his insights on the latest Halifax House Price Index, stating:
“The housing market seems to be getting back on its usual track with improved mortgage rates since the beginning of the year elevating the confidence of both buyers and sellers.
As prices gently increase, sellers might think buyers are willing to pay more, but many are still facing affordability challenges. Additionally, some lenders are starting to increase their mortgage rates, so borrowers should prepare to pay more than the very low rates we’ve seen in recent years.
The housing market is also getting a boost from more inquiries, a rise in available properties, and the expectation that interest rates might decrease later this year. Unfortunately, the Chancellor missed an opportunity to help the market by not introducing supportive measures in his Budget, which would have benefited not just the housing sector but the overall economy as well.”
